(BTZ) BlackRock Credit Allocation - Overview
Stock: Corporate Bonds, High Yield Bonds, Bank Loans
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 9.42% |
| Yield on Cost 5y | 12.18% |
| Yield CAGR 5y | 0.00% |
| Payout Consistency | 92.5% |
| Payout Ratio | 56.0% |
| Risk 5d forecast | |
|---|---|
| Volatility | 6.65% |
| Relative Tail Risk | -1.43% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.37 |
| Alpha | -0.20 |
| Character TTM | |
|---|---|
| Beta | 0.321 |
| Beta Downside | 0.475 |
| Drawdowns 3y | |
|---|---|
| Max DD | 12.17% |
| CAGR/Max DD | 0.69 |
Description: BTZ BlackRock Credit Allocation January 20, 2026
BlackRock Credit Allocation Income Trust (NYSE: BTZ) is a closed-ended balanced mutual fund launched on 27 December 2006 and domiciled in the United States. It is co-managed by BlackRock Advisors, LLC and BlackRock (Singapore) Limited, and it was previously known as BlackRock Preferred & Equity Advantage Trust.
The fund’s mandate is to allocate capital across the global fixed-income market, targeting an average credit quality of BBB (S&P). Its portfolio can include investment-grade corporate bonds, high-yield bonds, senior bank loans, preferred securities, convertible bonds, and related derivatives, giving it flexibility to shift between credit tiers and sectors.
As of the most recent quarterly filing (Q4 2023), BTZ reported an assets-under-management (AUM) of roughly $2.1 billion and a 30-day SEC-yield of 5.4 %, which is above the Bloomberg Aggregate Bond Index’s yield of 4.2 % for the same period. The fund’s weighted-average duration sits near 4.8 years, positioning it to be moderately sensitive to interest-rate moves.
Key macro drivers for BTZ include the Federal Reserve’s policy trajectory, global sovereign-credit spreads, and corporate earnings trends that affect high-yield issuance. A recent tightening of credit spreads in the European high-yield market (≈ 45 bps since early 2024) has improved risk-adjusted returns for funds with a BBB bias, while a flattening yield curve could compress the spread between investment-grade and high-yield bonds, influencing the fund’s allocation decisions.
If you want a deeper, data-driven view of BTZ’s valuation and risk metrics, a quick look at the fund’s profile on ValueRay can help you spot any pricing anomalies before they widen.
Piotroski VR‑10 (Strict, 0-10) 3.5
| Net Income: 126.8m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.05 > 0.02 and ΔFCF/TA -1.83 > 1.0 |
| NWC/Revenue: -108.6% < 20% (prev 18.99%; Δ -127.6% < -1%) |
| CFO/TA 0.07 > 3% & CFO 130.0m > Net Income 126.8m |
| Net Debt (580.9m) to EBITDA (62.1m): 9.35 < 3 |
| Current Ratio: 0.18 > 1.5 & < 3 |
| Outstanding Shares: last quarter (93.3m) vs 12m ago 0.0% < -2% |
| Gross Margin: error (current vs previous; cannot be calculated due to missing/invalid data or negative margin) |
| Asset Turnover: 7.57% > 50% (prev 7.65%; Δ -0.08% > 0%) |
| Interest Coverage Ratio: 4.31 > 6 (EBITDA TTM 62.1m / Interest Expense TTM 19.9m) |
Altman Z'' 1.08
| A: -0.08 (Total Current Assets 31.6m - Total Current Liabilities 175.4m) / Total Assets 1.83b |
| B: -0.06 (Retained Earnings -103.6m / Total Assets 1.83b) |
| C: 0.05 (EBIT TTM 85.7m / Avg Total Assets 1.75b) |
| D: 1.38 (Book Value of Equity 1.06b / Total Liabilities 768.3m) |
| Altman-Z'' Score: 1.08 = BB |
What is the price of BTZ shares?
Over the past week, the price has changed by +0.47%, over one month by +0.23%, over three months by -0.71% and over the past year by +7.51%.
Is BTZ a buy, sell or hold?
- StrongBuy: 1
- Buy: 0
- Hold: 0
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the BTZ price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | - | - |
| Analysts Target Price | - | - |
| ValueRay Target Price | 12.2 | 14.3% |
BTZ Fundamental Data Overview February 04, 2026
P/S = 9.6117
P/B = 0.9354
Revenue TTM = 132.4m USD
EBIT TTM = 85.7m USD
EBITDA TTM = 62.1m USD
Long Term Debt = unknown (0.0)
Short Term Debt = 588.3m USD (from shortTermDebt, last quarter)
Debt = 580.9m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 580.9m USD (from netDebt column, last quarter)
Enterprise Value = 1.57b USD (993.9m + Debt 580.9m - CCE 1218 )
Interest Coverage Ratio = 4.31 (Ebit TTM 85.7m / Interest Expense TTM 19.9m)
EV/FCF = 17.64x (Enterprise Value 1.57b / FCF TTM 89.3m)
FCF Yield = 5.67% (FCF TTM 89.3m / Enterprise Value 1.57b)
FCF Margin = 67.41% (FCF TTM 89.3m / Revenue TTM 132.4m)
Net Margin = 95.72% (Net Income TTM 126.8m / Revenue TTM 132.4m)
Gross Margin = unknown ((Revenue TTM 132.4m - Cost of Revenue TTM 5.37m) / Revenue TTM)
Tobins Q-Ratio = 0.86 (Enterprise Value 1.57b / Total Assets 1.83b)
Interest Expense / Debt = 1.07% (Interest Expense 6.22m / Debt 580.9m)
Taxrate = 21.0% (US default 21%)
NOPAT = 67.7m (EBIT 85.7m * (1 - 21.00%))
Current Ratio = 0.18 (Total Current Assets 31.6m / Total Current Liabilities 175.4m)
Debt / Equity = 0.55 (Debt 580.9m / totalStockholderEquity, last quarter 1.06b)
Debt / EBITDA = 9.35 (Net Debt 580.9m / EBITDA 62.1m)
Debt / FCF = 6.51 (Net Debt 580.9m / FCF TTM 89.3m)
Total Stockholder Equity = 1.06b (last 4 quarters mean from totalStockholderEquity)
RoA = 7.24% (Net Income 126.8m / Total Assets 1.83b)
RoE = 12.01% (Net Income TTM 126.8m / Total Stockholder Equity 1.06b)
RoCE = 8.12% (EBIT 85.7m / Capital Employed (Equity 1.06b + L.T.Debt 0.0))
RoIC = 4.20% (NOPAT 67.7m / Invested Capital 1.61b)
WACC = 4.79% (E(993.9m)/V(1.57b) * Re(7.10%) + D(580.9m)/V(1.57b) * Rd(1.07%) * (1-Tc(0.21)))
Discount Rate = 7.10% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 7.95%
Shares Correlation 3-Years: 0.0 | Cagr: 0.0%
[DCF Debug] Terminal Value 85.75% ; FCFF base≈98.4m ; Y1≈93.0m ; Y5≈87.9m
Fair Price DCF = 22.06 (EV 2.64b - Net Debt 580.9m = Equity 2.06b / Shares 93.3m; r=5.90% [WACC]; 5y FCF grow -7.12% → 2.90% )
EPS Correlation: -8.89 | EPS CAGR: -15.16% | SUE: 0.46 | # QB: 0
Revenue Correlation: 4.56 | Revenue CAGR: 1.79% | SUE: N/A | # QB: 0